Term Structure A Headwind For Dynamic VIX Hedge [View article]
I would recommend using http://bit.ly/P9iF6l to monitor the shape of the curve to monitor decay. The VXX roll cost would be the percentage shown between month 1 & 2. The VXZ roll cost would be the second number listed next to the "Month 7 to 4 contango" box at the bottom. Hope this helps.
American Realty Capital Properties: Plenty Of Salsa, But Not Yet A SWAN [View article]
Actually, if you click on the link that Brad included to the actual filing it definitely sounds like ARCT IV is getting first right of refusal to any property with a 10+ lease term. Therefore, I think Brad's concerns about the the external management of ARCP are warranted.
Term Structure A Headwind For Dynamic VIX Hedge [View article]
Ian,
I not trying to make excuses for a bad investment (which this was), but the landscape did shift. The cost of maintaining long exposure to the VIX in the back end of the curve increased 2.5x and has stayed at close to that elevated level since.
Cole Credit Property Trust: The Best Advice I Can Offer Is To Ignore The REIT-Land Bully [View article]
Keith, Brad, or uptick_rule_now, Has anyone looked into the internalization fees that Cole will collect if they go through with their plan (e.g. not selling to ARCP)? I haven't done the research but have heard that the fees are fairly large, which ads another conflict of interest on the Cole side of the deal.
Brad, As someone who is long ARCP in our client portfolios, this deal is unsettling to me for the reasons you pointed out. The most confusing part of your article is that you recommend that Cole ignore the bully but also state that a 5.2 cap rate is ridiculous. If it is ridiculous (and I tend to agree with you on that point) and Cole really is looking to maximize their shareholder value, then they should take the deal.
Watch Out For The Non-Traded REIT Febezzelers [View article]
I don't think it is "an about face for ARC." They have been shouting for more transparency in the private REIT space since day 1 of their company and they are executing as advertised.
Seems fairly logical to me, but it probably won't happen because it isn't the European way. I would also venture to guess that bank failures would freeze the credit markets, deepen the recession Cyprus is already experiencing, and put pressure on Cypriot leaders to leave the EMU so that they could devalue their currency and become more competitive. That is an outcome that the Troika does not want to see.
Why I'm Shorting VXX Rather Than Buying XIV [View article]
Again, that is only true if you are comparing a one time short of VXX to a one time purchase of XIV. It is not true if you are rebalancing your short exposure to VXX as I've described above. In that scenario, you take on just as much risk continuously shorting VXX as you do buying and holding XIV.
Term Structure A Headwind For Dynamic VIX Hedge [View article]
American Realty Capital Properties: Plenty Of Salsa, But Not Yet A SWAN [View article]
Why The Fed Balance Sheet Matters [View article]
Term Structure A Headwind For Dynamic VIX Hedge [View article]
Term Structure A Headwind For Dynamic VIX Hedge [View article]
I not trying to make excuses for a bad investment (which this was), but the landscape did shift. The cost of maintaining long exposure to the VIX in the back end of the curve increased 2.5x and has stayed at close to that elevated level since.
Cole Credit Property Trust: The Best Advice I Can Offer Is To Ignore The REIT-Land Bully [View article]
Cole Credit Property Trust: The Best Advice I Can Offer Is To Ignore The REIT-Land Bully [View article]
Has anyone looked into the internalization fees that Cole will collect if they go through with their plan (e.g. not selling to ARCP)? I haven't done the research but have heard that the fees are fairly large, which ads another conflict of interest on the Cole side of the deal.
Brad,
As someone who is long ARCP in our client portfolios, this deal is unsettling to me for the reasons you pointed out. The most confusing part of your article is that you recommend that Cole ignore the bully but also state that a 5.2 cap rate is ridiculous. If it is ridiculous (and I tend to agree with you on that point) and Cole really is looking to maximize their shareholder value, then they should take the deal.
Watch Out For The Non-Traded REIT Febezzelers [View article]
Watch Out For The Non-Traded REIT Febezzelers [View article]
Sowing The Seeds For A Bank Run [View article]
Sowing The Seeds For A Bank Run [View article]
Sowing The Seeds For A Bank Run [View article]
Sowing The Seeds For A Bank Run [View article]
Why I'm Shorting VXX Rather Than Buying XIV [View article]
A Golden Tug Of War [View article]